Liverpool City Council is to appeal against a High Court ruling that quashed plans to build 51 homes in a popular park.
The council said it would not seek to revive the Harthill scheme in Calderstones Park.
But Chief Executive Tony Reeves said the decision "cast doubt" on how to deal with "green wedge" land.
The decision was a victory for campaigners Liverpool Open Green Spaces (LOGS), who fought the plans.
In a written judgement, Mr Justice Kerr upheld their appeal on the grounds that the council had misinterpreted part of its own policy relating to the protection of "green-wedge" land.
Under planning policy, "green wedges" comprise the open spaces between the countryside and built-up areas and are intended to "restrict development beyond prescribed boundaries".
Following the High Court's ruling, Mayor Joe Anderson said the Harthill scheme was "dead" and would not be revived.
Mr Reeves said the council's position would not change, but the council was seeking "clarity" on how this type of land should be assessed.
"The judgement raises much wider issues about established planning policy and the difference between green belt and green wedge."
He added: "As a growing city, we need a solid planning framework which outlines clear definitions for types of land to help us arrive at consistent decisions."
The council has confirmed it will not appeal the costs following the ruling last month.